TEMECULA: School district vows to spend wisely

Commitment of solvency condition of budget

Temecula school trustees made a vow Tuesday to make sure they
don't overspend.

As a condition of the Riverside County Office of Education
giving approval to the district's 2010-11 budget, the school board
was told that it had to make a "commitment to fiscal solvency,"
with trustees promising they would make whatever cuts necessary to
ensure they maintain the state-required reserve level in their
2011-12 and 2012-13 spending plans.

Temecula Valley Unified School District trustees voted
unanimously to approve making the commitment.

The county office approves budgets for all 23 school districts
in Riverside County. Those budgets must contain a spending plan for
the current and two subsequent years.

Temecula spent more than it took in last year, and will do so
again in 2010-11 due to receiving less-than-expected money from the
state.

The deficit spending comes despite the fact the district cut $18
million from its current budget, which reflects expectations of
$197 million in income and $205 million in expenses

School districts are required to have 3 percent of their budget
held in reserve, which for Temecula equates to $6.2 million this
year.

The district has that required amount set aside now, and has
also held back an additional $2.2 million to compensate for any
further revenue reductions from the state.

On Tuesday, Jeff Okun, the assistant superintendent in charge of
finances, said an extra $3.4 million that was carried over from the
recently concluded fiscal year will be added to that pot.

Okun suggested saving that money ---- and any money received
through the federal jobs bill that was recently enacted.

"Our goal was to realize that this budget crisis is not a
one-year budget, but a multiyear budget crisis," he told trustees.
"The smart play would be to hold that money because you are going
to need it."

That money will minimize the anticipated $14.6 million in budget
reductions anticipated for the 2011-12 budget and $10.7 million in
expenses that need to be reduced for 2012-13, according to a report
by Okun.

So far, it has been suggested that the district continue salary
reductions for employees for the next two years, a move that would
have to be negotiated with their labor unions.

In the spring, the unions for teachers and support workers
agreed to take nine furlough days. That amounts to a savings of
$6.2 million this year.

Even if employees agree to continue with the furlough days, some
$5 million more will be need to cut in each of the next two years
to balance the budget, according to Okun's report.